Mortgage broking Melbourne

What next for the Investment Property Market?

There has been a general pausing for breath by many in respect to their property and lending activities, as we see negative reports for the property markets in the major capital cities and the banks are on the nose.

However, look past the headlines and there is still plenty of positive aspects to focus on: Australia’s population growth remains strong and this week the ABS predicted the nation’s population would hit 25m in August.

While investors may be sitting on the sidelines, preferring to do their tax return rather than look for a property in a flat market, the sheer weight of numbers means that Australians will need somewhere to live!

Certainly, the major lenders are pulling back their mortgage lending. But many smaller lenders are aggressively taking their place. And, with interest rates available below 4.00% per annum, many borrowers are happy to use smaller lenders – often who are not as hamstrung by APRA’s policies.

Sections of the media have seen the end of some borrowers’ interest-only period as a ticking time-bomb. But experienced brokers see this as a furphy; strong demographics plus competitive lending are hardly a recipe for a market collapse.

Undoubtedly the heady days may well be behind us, but the savvy purchasers are discussing their financial position with their advisers before looking at re-entering the market later in the year.